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6.3 Resolution No. 23-8106 Banking ServicesAGENDA SECTION NO: ITEM NO: Page I ITEM: Resolution 23-8106 CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 02/06/2023 4:00 P.M. ORIGINATING DEPARTMENT: I FISCAL APPROVAL: A 3 Finance/Administration BY: Debbie Pack, Director BY: IAQj/t1�_ IkJOI%LSI BY: Resolution Number 23-8106, designating official depositories for city funds, providing authority for wire transfers, providing for authorization of check signers, and authorizing securities purchases and sales. Authorize the City Manager to execute an agreement with Equity Bank to provide banking services for the City of Salina. BACKGROUND: Resolution No. 23-8106 K.S.A. 9-1401 directs the governing body of any municipality to designate by official action the banks, savings and loan associations and savings banks which shall serve as depositories of the governing body's funds and the officer and official having the custody of such funds shall not deposit such funds other than at such designated banks, savings and loan associations and savings banks. The banks, savings and loan associations and savings banks which have main or branch offices in the county in which all or part of the municipality is located shall be designated as such official depositories if the municipality can obtain satisfactory security.. This action is required for all funds of the City, including operating accounts and investments. The last time the City adopted a designation resolution was on November 25, 2019 under Resolution 19-7773 (attached). On May 17, 2021 Equity Bank merged with American State Bank. In order to update the designation of depositories for the City, staff is recommending the adoption of Resolution 23-8107 which replaces American State Bank with Equity Bank as an official depository for the City. Banking Services Agreement In October, 2022, the City of Salina sent out a Request for Proposal (RFP) for Banking Services (attached) which included, but was not limited to, operating accounts, subsidiary accounts, on-line banking, lock box services, and purchasing card services. The RFP was sent to all local financial institutions, was posted on the City's website and a notice was published in the Salina Journal. The City received proposals from four (4) institutions. An evaluation team consisting of the City Manager, Deputy City Manager, Assistant City Manager, Director of Finance, Deputy Director of Finance and Director of Continuous Process Improvement evaluated the proposals based on the proposed scope of services, the experience, expertise and qualifications of key banking personnel, and financial strength and stability of the bank. With the assistance of the City's financial advisor, the team also evaluated the financial structure of the proposals. The team found that all proposals met the specifications and all respondents were highly qualified institutions that could meet the needs of the City. The RFP itemized the banking services the City was requesting and the banks provided their ability to perform these services, as well as, the fees associated with each service. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 02/06/2023 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: BY: ITEM Finance/Administration FINAL APPROVAL: NO: Page 2 BY: Debbie Pack, Director BY: In order to achieve a waiver of banking service fees, some banks proposed a minimum balance be held that was either non-interest bearing or would receive a 1 % credit to offset fees. In addition, banks provided a proposed rate of return on the City's deposits. Each rate of return was expressed relative to an index or flat rate proposed by the bank. The indexes varied between the Kansas Municipal Investment Pool rate and the Federal Funds rate. The banks proposed varying discount rates relative to their proposed index for example, index less 20 basis points, index less 80 basis points, etc. Staff consulted with our financial advisor about the various proposed indexes, the past performance of those indexes and whether it was likely that there would be significant deviations in the performance of one index relative to another. Staff concluded that the indexes being utilized were standard in the banking world and that as one index fluctuated, the others would fluctuate similarly. In order to develop an objective comparison of the various proposals, staff developed a standard scenario to quantify the anticipated interest earnings and deduct service charges (when applicable) to arrive at a net annual financial value for each proposal based on the predetermined standardized assumptions. The attached Analysis of Banking Proposals table provides a side-by-side comparison of the proposals received noting the deposit amount and earnings conditions proposed, calculating the annual interest that would be earned, deducting annual fees incurred and providing a final net value of each proposal based upon their proposed index on 11/21/22. As staff is being more aggressive with investment of idle funds, an overnight balance of $25,000,000 was utilized for this comparison. From their extensive review of the proposals and comprehensive financial impact analysis, the evaluation team is recommending that the City of Salina enter into a three year banking services agreement with Equity Bank FISCAL NOTE: The financial impact of this action will be the cost of banking fees, as well as, the earnings on the City's idle funds as estimated in the attached spreadsheet. Actual performance will vary based upon applicable bank fees, based on usage, and interest earned on the actual amount of funds on deposit and applicable interest rate which will be calculated monthly. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 02/06/2023 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: BY: ITEM Finance/Administration FINAL APPROVAL: NO: Page 3 BY: Debbie Pack, Director BY: COMMISSION ACTION OR RECOMMENDED ACTION: Staff has identified the following options for the City Commission's consideration: Resolution 23-8106 1.) Approve Resolution No. 23-8106 designating official depositories for city funds, providing authority for wire transfers, providing for authorization of check signers, and authorizing securities purchases and sales and repealing Resolution No. 19-7773. 2.) Approve Resolution No. 23-8106 with amendments as the City Commission deems appropriate. 3.) Postpone consideration of Resolution No. 23-8106 to a specified date and time and provide staff direction regarding additional information or amendments the City Commission would like to request for their further consideration. 4.) Vote to deny Resolution 23-8106 resulting in the City not being able to contract with Equity Bank for banking services. Staff recommends Option #1. Authorization for City Manager to execute banking services agreement with Equity Bank 1.) Authorize the City Manager to execute a banking services agreement with Equity Bank. 2.) Authorize the City Manager to execute a banking services agreement with Equity Bank with amendments as the City Commission deems appropriate. 3.) Postpone consideration to a specified date and time and provide staff direction regarding additional information or amendments the City Commission would like to request for their further consideration. 4.) Vote to deny Authorization for City Manager to execute agreement with Equity Bank which will result in staff having to either republish a banking services RFP, select another respondent or leave our services with our current bank. Staff recommends Option #1. Attachments: Resolution No. 19-7773 Banking Services Request for Proposal Analysis of Banking Proposals Resolution No. 23-8106 Repeals Resolution No. 04-6072 RESOLUTION NUMBER 19-7773 A RESOLU>eION DESIGNATING THE OFFICIAL DEPOSITORIES FOR ALL MONEYS OF THE CITY OF SALINA, KANSAS, PROVIDING AUTHORIZATION FOR WIRE TRANSFERS, DESIGNATING AUTHORIZED CHECK SIGNERS, AUTHORIZING SECURITIES PURCHASES AND/OR SELL AND REPEALING RESOLUTION NUMBER 04- 6072. WHEREAS, K.S.A. 9-1401 requires that all municipalities designate by official action, all eligible depositories of the governing body's funds, WHEREAS, K.S.A. 9-1401 also states that banks, savings and loan associations and savings banks which have main or branch offices in the colony in which all or part of the municipality is located shall be designated as such official depositories, and WHEREAS, Bennington State Bank, UMB Bank, Sunflower Bank, The Bank of Tescott, Central National Bank, Solomon State Bank, Capitol Federal Savings, Bank VI, American State Bank, First Bank Kansas, and Exchange Bank are all authorized depositories for municipal funds, and WHEREAS, the City Manager, Deputy City Manager, Finance Director and Deputy Finance Director are responsible for the daily fmancial operations of the City of Salina; SO NOW, THEREFORE BE IT RESOLVED by the Governing Body of the City of Salina, Kansas: Section 1. That all public moneys received by the City of Salina be deposited in Bennington State Bank, UMB Bank, Sunflower Bank, The Bank of Tescott, Central National Bank, Solomon State Bank, Capitol Federal Savings, Bank VI, American State Bank, First Bank Kansas, or Exchange Bank, all of which are authorized depositories of municipal funds, located in the City of Salina, Saline County, Kansas. Section 2. That the City Manager, Deputy City Manager, Finance Director, Deputy Finance Director and Human Resource Director are authorized to approve ACII and wire transfer payments on behalf of the City of Salina. Section 3. That the City Manager, Deputy City Manager, Finance Director and Deputy Finance Director may authorize check signers and access to the various accounts required by the City of Salina. Section 4. That the City Manager, Deputy City Manager, Finance Director and Deputy Finance Director are authorized to approve the purchase and/or sell of securities for the account of the City of Salina. Section 5. That Resolution Number 046072 is hereby repealed. Adopted by the Board of Commissioners and signed by the Mayor this 25"1 day of November, 2019. �E (SEAL) Trent W. Davis, M.D., Mayor ATTEST: Wile Shandi Wicks, CMC, City Clerk DATE: October 26, 2022 TO: Prospective Financial Institutions The City of Salina is requesting competitive proposals from firms qualified to provide BANKING SERVICES. Proposals must be received no later than 4:00 PM, TUESDAY, NOVEMBER 22, 2022 Submit one (1) original signed proposal to: City of Salina Request for Proposal — Banking Services Attn: Debbie Pack 300 West Ash Street, Suite 206 Salina, KS 67402-0736 Submit one (1) electronic proposal to: Debbie. pack(a salina.org Said proposals must be clearly labeled — RFP — BANKING SERVICES Questions concerning this RFP should be directed to Debbie Pack, 785-309-5735 or Debbie. pack( salina.org. Late proposals will be rejected and returned unopened. Sincerely, Debbie Pack Director of Finance and Administration Cityof ti CONTENTS AFFIDAVIT I. GENERAL BACKGROUND II. MINIMUM QUALIFICATIONS III. SCOPE OF SERVICES IV. REQUIRED BANKING SERVICES V. OPTIONAL BANKING SERVICES VI. OTHER VALUE-ADDED BANKING SERVICES VII. PROPOSAL SUBMISSION PROCESS AND DEADLINES VIII. PROPOSAL REQUIREMENTS IX. FORMAT FOR SUBMISSION OF PROPOSAL X. REQUESTS FOR INFORMATION XI. EVALUATION OF PROPOSALS XII. PROPOSAL SCHEDULE XIII. CONTRACT REQUIREMENTS EXHIBIT A: APPLICATION TO ACT AS DEPOSITORY EXHIBIT B: REQUIRED SERVICES EXHIBIT C: OPTIONAL SERVICES EXHIBIT D: OTHER VALUE-ADDED SERVICES AFFIDAVIT I, ________ (Name of Individual) of the City of County of State of _------ , being duly sworn on her or his oath, deposes and says: That I am the — (Title) of (Firm Name), and have been authorized by said firm to make this affidavit on its behalf; 2. No officer, agent or employee of the City of Salina, Kansas is financially interested, directly or indirectly, in what firm is offering to sell to the City pursuant to the Request for Proposals; or The following officer(s), agent(s), or employee(s) of the City of Salina would be financially interested in or receive a benefit from the profit or payments of any contract, job work, or service provided to the City of Salina: (list all such officers, agents, or City employees on a separate sheet); (Affiant shall line through the statement which does not apply; failure to line through one statement shall disqualify the proposal). 3. If firm were awarded any contract, job work, or service for the City of Salina, Kansas, no officer, agent or employee of the City would be financially interested in or receive any benefit from the profit or payments of such; or The following officer(s), agent(s), or employee(s) of the City of Salina would be financially interested in or receive a benefit from the profit or payments of any contract, job work, or service provided to the City of Salina: (list all such officers, agents, or City employees on a separate sheet); (Affiant shall line through the statement which does not apply; failure to line through one statement shall disqualify the proposal). 4. Firm has not participated in collusion or committed any act in restraint of trade, directly or indirectly, which bears upon anyone's response or lack of response to this Request for Proposals. (Firm Name) By: (Signature) --------------------------------- (Printed Name) ------------------------------------- (Title) ---------------------------------- Mailing Address ----------------------------------- City, State, Zip Code Phone Fax Email Address: Federal Tax I. D. # IH city of Salina I. GENERAL BACKGROUND The City of Salina (the City) is requesting competitive proposals from eligible financial institutions to act as the City's depository institution for the period of three years, effective on March 1, 2023, or other date as determined between the City and financial institution, with additional one-year renewal options. Eligible institutions must meet the requirements of K.S.A. 12-1675 and meet the minimum qualifications as stated within this Request for Proposals. Banking services and charges will be reviewed on an annual basis to ensure the equity of the agreement for both parties. It is the intent of the City to have one financial institution provide the banking needs for the City's main operating account, and other minor City accounts and other banking services described. The intent of this Request for Proposal is to provide qualified financial institutions an equal opportunity to submit proposals to handle the City's bank accounts and services. Banking services not requested in this proposal will be negotiated between the City and the selected bank if required at a later date. MINIMUM QUALIFICATIONS The following indicates the minimum qualifications and criteria for a bank's proposal to be eligible for consideration and evaluation. Specific responses to each requirement must be provided in your proposal. • Be insured by the Federal Deposit Insurance Corporation (FDIC). • Be eligible to be a depository of City funds pursuant to K.S.A. 9-1401 and 9- 1408, et seq., as amended with full-service branch in or near Salina. All responding banks must complete Exhibit A. • Be an online cash and securities member of the Federal Reserve. • Be able to provide 100% collateralization of all City deposits with collateral in compliance with the City Investment Policy. 5 City of Salina Provide credit information from a nationally recognized rating organization such as Moody's, Standard & Poor's, etc. Have the capacity of providing all Required Banking Services internally. The City prefers that the responding bank provide services without the use of joint ventures, consortiums, or contract service providers because of control issues. The City will determine the acceptability of any arrangements with the objective of the RFP being the total solution. • Maintain a financial institution bond, Form 24 or equivalent, with a limit of not less than $3,000,000 banker's professional liability in the amount of $2,000,000 per occurrence/annual aggregate and valuable paper coverage. • Branch locations within the City limits of Salina, Kansas. III. SCOPE OF SERVICES Details of the services to be provided to the City are separated into three categories. 1. Required Banking Services These services are listed in Section IV and in Exhibit B and must be provided by the selected bank. 2. Optional Banking Services These services are listed in Section V and in Exhibit C, and the City may desire to use them depending on the availability and price of the services offered. However, the City may award a contract for these services to a separate bank(s) besides the main depository that is awarded the contract for required services in Section IV above. Proposals are not required to address any optional services in order to be considered an acceptable proposal. City & J Salina 3. Other Value -Added Banking Services These are services not otherwise identified in this RFP that the proposing bank may offer to the City. Please submit your proposal on Exhibit D for any additional services that you wish the City to consider. Include all necessary attachments, fees and discussion materials to clarify the services being offered. IV. REQUIRED BANKING SERVICES All proposals must include the following services, which will be required in the City's Banking Services agreement. Proposing Banks must submit a completed Exhibit A and Exhibit B with the proposal. 1. Account Structure The City will require this to be an interest-bearing checking account. All of the City's operations will flow through this account, including the deposit of revenues, accounts payable payments, payroll and investment purchases and maturities. The City will send and receive wire transfers and ACH transfers, write checks, and make deposits to this account. The City requires the ability to access real time detailed information of all incoming ACHs and wires for this account at no cost to the City. The following chart describes the frequency of various activities that will be processed in this account. Item Frequency Accounts Payable Checks Weekly Deposits Daily Payroll Every two weeks Investment Purchases As Needed Investment Maturities As Needed ACH Debits/Credits As Needed Cityof Salina 2. Access to Records The depository bank shall allow reasonable access to the Finance Director, Finance staff, the City's independent auditors and federal auditors to examine records relating to the use of City funds. In the response, please provide information about this service, including all costs. 3. On -Line Treasury Management Describe in detail your online communication capabilities for balance inquiry including immediate and delayed clearing balances, item image retrieval, wire and ACH transfer initiation, stale dated check management, stop pay management, exception item review using positive pay, safekeeping data and investment performance reporting, and any other online information that will be available to the City. In addition, please describe the training available and appropriate controls regarding the City's accounts using online access. Finally, indicate the hardware/software requirements necessary to run the access program. 4. Deposit Slips Two-part, pre -numbered deposit slips will be required, as well as self -inking endorsement stamps for the following departments: Municipal Court, Water Customer Accounting, Planning and Development Services, Fire, Finance, Police, Parks and Recreation, Landfill, Arts and Humanities. 5. Locked Bank Bags Provide locked bank bags to be placed in a night drop or used by a courier. The bank will open these bags, verify the amount(s), make the deposit(s), and send a copy of the deposit slip to the City. 6. Lockbox Services The City of Salina does not currently have a lockbox account, but wishes to add one for the Utility Billing. The successful vendor will perform the following processes for items sent to the lockbox location: a. Collect and open mail from lockbox location at various times each business day. b. Compare remittance documents to the accompanying check for amount verification. c. Endorse all checks contained therein. W City of Salina d. Deposit such checks into the account in one lump sum for the day. e. Email the deposit information to the City's designee. f. Processed documents, deposit slips and other mail not containing checks will be delivered to City designee each business day. g. Provide online access to imaged lockbox documents (statement stubs and checks) allowing immediate access to processed items. 7. ACH Collections The City operates a water and sewer utility with approximately 21,000 customers. Customers shall have the opportunity to make direct payments by ACH for their monthly fees. Please describe your services in this area. 8. Remote ACH Check Deposit Service The City currently receives a substantial volume of check payments over the counter at cashier operations in City Hall, Municipal Court, the Police Department, and Parks & Recreation offices, and in other areas. With the implementation of Remote ACH Check Deposit Service, it is anticipated that the operating bank can accept quality images of checks in file format over the internet and collect payment of these checks via image presentment as an alternative to receiving the checks via armored car. Please describe the service that is available to the City and clearly define costs and implementation procedures including equipment requirements. Also, describe the latest deposit time for the file to be transmitted to the bank and what checks if any that cannot be converted to the image deposit format. 9. Availability of Funds Deposited What is the collected funds availability schedule for the City's deposits? These deposits include checks, credit cards, money orders, cash, ACH credits and wires from local, regional, and out of state banks. The City requires updates as the schedule changes. Also, describe the latest daily deposit time for fastest availability on deposits including deposits made using file transmissions of check images. 9 City of Salina 10. Returned Checks All deposited checks that are returned will be sent back to the City and processed against the City's account. The City desires to have a second presentment of the check for any NSF checks that are deposited. As an option, the NSF check can be converted to ACH and presented for payment rather than a second presentment of the check. Please provide information about this service, including all costs. 11. Payee Positive Pay and Automated Account Reconciliation The City requires the use of a payee positive pay account reconciliation and fraud prevention program. As checks are disbursed, the City will provide the bank with computer readable record file detailing the payee, check number, date and dollar amount of each item. Only those items reported by the City will be allowed to clear the account. The bank shall provide the City a daily list of exception items for payment approval or rejection. The City requires that the exception items not be paid as the automatic default. Describe your system and how stale checks will be handled, and include information regarding the requirements for the electronic file, such as format, etc. Please also describe any ACH Positive Pay services or other fraud prevention options your offer. At the end of each month, the Positive Pay account reconciliation shall consist of outstanding items. The City requires information be provided electronically to reconcile its accounts. The electronic file shall be in the standard CSC (comma delimited) format for interfacing with the City's financial system. Information is expected to be received within three business days of month-end and shall contain the date, bank account number, check number and amount. Responding banks should describe their systems and how stale dated checks will be handled. The City requires that the payee positive pay program be integrated with the bank teller operations to maximize controls. In the response, please describe the status of the online teller access. 12. Check Clearing Account In the past, the City has not utilized a zero -balance check clearing account. If proposing the City of Salina to utilize such an account, detail benefits, costs 10 City of Salina associated with the account and the cost savings the City could realize from using such an account. 13. Cancelled Check Safekeeping Please describe your cancelled check safekeeping to include image recovery for processed checks. The bank shall provide a monthly electronic data set containing information of all checks cleared by the bank. These data sets shall be furnished for dates from the first day of the month through the last day of each month and shall include the following information: check #'s paid; date cleared; and amount. The cancelled checks or check images shall be returned monthly in numerical sequence by check number on or before the fifth working day of the following month. 14. Electronic Vendor Payments (ACH or VISA Network) The City currently pays some of its vendors electronically and desires to expand its use of this form of payment. Please describe any electronic payment system, with cost structure, your bank provides and the bank plans for expanding the service. 15. Debit Blocks and Filters The City requires the ability to place Debit filters and blocks on all accounts to minimize the potential of fraudulent withdrawals. Please describe your program and all costs associated with implementing filters and blocks. 16. Employee Pay The bank must have the ability to provide direct deposit employee payroll using ACH payments. Please describe your ACH services. What is the deadline to receive direct deposit payroll (ACH) information to ensure that it will be credited to the employees account first thing Friday morning? For those employees that do not utilize direct deposit, the bank must be capable of providing pay cards 11 Cityof Salina that can be used by the employee to access their pay. Please provide details on this program's cost and transaction limits. An optional use for these cards may be for emergency travel and cash advances. 17. Purchasing Cards In 2022, the City had roughly 120 purchasing cards outstanding with a transaction volume of approximately $1.0 million. The City will need to receive transaction data in a format that can be sent to the purchaser for review and approval. Please describe your program, including all costs, fraud management, rebate matrix, accounting information to be provided to the City, reporting capabilities, Internet capabilities, card formats, controls for the use of the cards, reconciliation process, etc. Attach a copy of your bank's contract for this service. 18. Collateral Pursuant to K.S.A. 9-1402, as amended, the bank is required to collateralize City deposits. The City Investment Policy requires that pledged securities have a market value equal to at least 100% of the amount of the total deposits of public funds, including accrued interest earned. Under the City's investment policy, the following items are considered acceptable collateral: 1. Direct obligations of, or obligations insured as to principal and interest by, the United States Government or an AAA rated agency thereof, and obligations and securities of United States sponsored AAA rated corporations, which under federal law may be accepted as security for public funds. 2. Surety bonds, issued by a AAA rated insurance company as determined by a nationally recognized insurance rating agency, licensed to do business in the State of Kansas. Surety bonds are subject to review and approval by the City's Finance Director. 3. Letters of Credit issued by the Federal Home Loan Bank. 4. Bonds of the State of Kansas. If the bank chooses to pledge securities as collateral, the bank will be required to pledge the securities at the Federal Reserve Bank or at the Federal Home 12 City of Salina Loan Bank and execute a Security Agreement with the City giving control of the securities to the City. 19.Other Required Information a. Daylight Overdrafts Please provide details on any daylight overdraft issues that may concern your bank. It is possible that in managing the investment program of the City that payment for an investment purchase may occur before the receipt of funds from an investment sold or matured or from other sources. This could cause an occasional daylight overdraft that will be resolved before the end of the banking day. b. Designated Account Liaison The City will require the selected bank to designate a senior officer as a liaison. This officer must be capable of coordination of all City activities with the bank and be able to resolve any problems or issues that may arise. Biographical information must be included on all key bank personnel that will be assigned to service the City. c. Record Retention The bank should maintain records for the City for the term of seven years after the completion of the contract. d. Disaster and Back-up Plans Describe your bank disaster and back-up plans and capabilities. The City must have access to cash, securities, and information always. e. Statements The City requires monthly statements on all its accounts. The cut-off for these statements will be the last day of each month. These statements shall be readily available no later than the 3rd business day after the end of the month. f. Wire Transfer of Funds The City wire transfers funds to other banks. This service will be provided on the request of any approved City bank account designee (using electronic, telephonic, email, and/or written requests). Online submission is preferred — all other methods exist for backup. In order to maintain audit controls, the bank will provide written instructions to follow when wire transfers are requested by telephone. What is the cut-off time for the City to submit wire transfer information and have it 13 cityof Salina processed on the same day? Any money received directly at the financial institution by wire transfer of US Treasury, State of Kansas funds, or other financial institutions will be reported to the City's Finance Division immediately by telephone or email. The financial institution will then provide the City with a deposit slip or credit advice of the transaction. g. Bank Charges Charges for services and supplies provided by the bank will be directly deducted from the City's bank account. The bank will provide a detailed invoice to the City prior to deduction. h. Investments The City reserves the right to invest in time deposits, demand accounts (money market), US Treasury bills or notes, government agencies or repurchase agreements through other financial institutions if such action is to the benefit of the City. L Interest Income All account(s) will be interest bearing accounts and are not to go below the bank's normal savings account rate. Financial institutions are required to state in the proposal the interest rate offered, including the index used and the index's effective interest rate, specifically, the rate given to the City based on the number of basis points above or below the index. If an interest-bearing account is proposed for the automatic sweep product for the investment of end -of -day balances, please provide information on any FDIC charges on the bank account and describe the current FDIC charges. The proposal should also include all options available to public entities under Kansas statutes considering the City has expanded investment authority. Include your bank's earnings history for July 1, 2021 — June 30, 2022, earnings benchmark and all costs. Indicate which sweep investments option the bank recommends for the City and why it should be selected. j. Additional Services The City may request additional services not specifically mentioned in this RFP with a mutually agreeable fee to be charged by the bank. If the bank wishes to offer the City additional services not otherwise specified in 14 City of Salina this request for RFP, a description of these services, including unit costs, if any, should be included in the proposal. V. OPTIONAL BANKING SERVICES The City requests the proposing banks offer any optional services or make any recommendations it believes would enhance the cash management capabilities of the City. All proposing banks are encouraged to make suggestions or provide additional information not requested in this proposal. Banks are encouraged to describe factors that distinguish their institution from potential competitors. However, all respondents must submit a proposal on all required services in the proposal format provided. Optional services should be summarized on an attached Exhibit C, but can be accompanied and supported by other material. The City may elect to use some or all of the optional services, but not necessarily with the primary operating bank. The City may elect not to award a contract for any or all of the optional services to any banks. 1. Courier and Armored Car Services The City deposits cash and checks daily. At the present time, the City has a contract with an armored car service to pick up the daily deposit from City Hall, and other City facilities and deliver it to the bank. Please describe if you bank provides a service to include pick-up and subsequent deposit times for best funds availability and define the costs. The City is evaluating whether to have its own contract with an armored car service or to have the bank plan for delivery and would like the opinion of the responding banks. 2. Check Issuance The City currently processes vendor checks weekly. Please describe if you bank has the ability to issue checks on behalf of the City for payments made to vendors and suppliers, what this process looks like and include any applicable fees. VI. OTHER VALUE-ADDED BANKING SERVICES Please describe any other banking services that your bank would be willing to offer by summarizing and including attachments for review by the City. 15 City of Salina VII. PROPOSAL SUBMISSION PROCESS AND DEADLINES One original signed proposal from interested banks must be received on or before 4:00pm on Tuesday, November 22, 2022 and addressed to: City of Salina Request for Proposal — Banking Services Attn: Debbie Pack 300 West Ash Street, Suite 206 Salina, KS 67402-0736 One (1) electronic signed proposal must be received by debbie.pack(c salina.orq_on or before 4:00 PM, November 22, 2022. Any proposal that is not received before the deadline date and time will not be considered. The City reserves the right to accept or reject any and all proposals, to waive technicalities or irregularities involving any proposal. Proposals will be time -stamped upon receipt and held in a secure place until the established due date. A record of proposals will be established, which will include for all proposals, the following information: the name of the entity submitting the proposal; a description sufficient to identify the services offered; and, the date and time the proposals were opened. All proposals and related reference information submitted in response to this RFP will become the property of the City and will not be returned to the respondent. Each entity submitting a proposal waives any right of confidentiality as to the proposal documents. If an entity submitting a proposal considers certain material in the proposal proprietary information, it shall clearly designate those portions of the proposal it wishes to remain confidential. As a public entity, the City is subject to making records available for public disclosure. The City will attempt to maintain the confidentiality of material marked proprietary; however, it cannot guarantee that information will not be made public. Under no circumstances will any portion of a bidder's price proposal be considered confidential. The City reserves the right to (1) accept or reject any and all proposals and to waive any technicalities or irregularities involving any proposal and to cancel the RFP process at any time prior to entering into a formal contract for banking services, (2) not award a contract for any or all of the banking services that are the subject of this RFP process, (3) award contracts for banking services to separate banks, (4) negotiate contract terms acceptable to the City with the successful bank(s), (5) disregard all 16 city of Salina nonconforming, nonresponsive or conditional proposals and (6) reject the response of any bank which does not submit a proposal to the City's satisfaction. All proposals must be signed by a duly authorized individual, and the affidavit completed, signed and notarized (Page 3-4). During the evaluation process, the City reserves the right to request additional information or clarifications from those banks submitting proposals and to allow corrections of errors and/or omissions. Oral presentation may be required prior to selection; notification will be given if such meetings are required. Submission of a proposal indicates acceptance by the company submitting the proposal of terms, conditions and specifications contained in this RFP and to include the contract requirements set forth herein. The City will not pay for any information herein requested, nor is it liable for any costs incurred by those banks submitting proposals. The City reserves the right to select the proposal that will best meet the needs of the City. Proposals that do not meet the stated requirements will be considered in non-compliance and will be disqualified unless the City waives such non-compliance. All proposals must remain in effect for 120 days after the proposal due date. By submission of a proposal, each entity submitting a proposal certifies that: 1. It has not paid nor agreed to pay any person(s), other than a bona fide employee, a fee or a brokerage fee resulting from award of the contract. 2. The City may, by written notice to the entity submitting the proposal, reject the RFP or cancel any award under this RFP if it is found by the City that gratuities, in the form of entertainment, gifts or otherwise were offered or given to any representative of the City with a view toward securing an order or other favorable treatment with respect to this RFP or the entity submitting the proposal participated in collusion with another entity to restrain or eliminate competition. 3. The contents of this RFP and any clarifications distributed or issued by the City shall become part of the contractual obligation and incorporated by reference into the ensuing contracts as the City deems appropriate. All proposals must be submitted in a sealed envelope or box on or before the time specified herein. No proposals shall be opened until after the time specified for proposal submission. No proposal will be opened if submitted after the time specified 17 city of Salina herein for submittal of proposals. No public proposal opening will be held. All proposals will remain confidential until a selection is made or until all proposals are rejected. Those entities whose proposals meet the requirements of this RFP may be interviewed. VIII. PROPOSAL REQUIRMENTS 1. Proposals must include all required services as set forth in Section IV herein. 2. Proposals must be submitted in the format provided in this RFP, including the use of appropriate exhibits. 3. An individual having full authority to execute the proposal and to execute any resulting contract for services must sign each proposal, including Exhibit A. 4. The following bank profile data is required in each proposal: ■ The year 2021 financial statement or most recent 12 -month ending period must be included. ■ Identification of the three largest owners of the bank. ■ Description of how the City would rank relative to other customers of the bank in relationship to size and complexity of service. 5. Each proposal shall include resumes of key management and staff members that would be assigned to the account. 6. Each proposal shall include an organizational chart depicting the various departments, including contacts that would be involved in the City relationship. 7. Each proposal shall provide information regarding the proposing entity's community involvement within the City of Salina. 8. Each proposal shall include a list of names, addresses, phone numbers and email addresses for three customers of similar size and complexity to the City's requirements, including the name of a contact person. 9. Each proposal shall address the method of compensation to include the following: ■ The City requires that a monthly account analysis be presented within ten days from the cut-off date. The account analysis must show a minimum of the following information: o Account number o Period covered o Average ledger balance o Average collected balance o Services rendered to include type of service and quantity o Per unit charge for each service per the banking agreement IN city of Salina o Extended charges of each type of service provided o Total monthly charges of all services provided The City will make payment for bank services as follows: o By withdrawal from operating account All charges shall be in conformity with those specified in the Banking Service Quotation Forms Exhibit B, C and D. 10. Each proposal shall include the statement and contract drafts required by Section XIII of this RFP. Additionally, please address the following with your proposal: 1. Is the financial institution a member of the Federal Reserve System and insured by the FDIC? 2. State how and where the bank/local branch is chartered (federal or state). If chartered by a state, identify the state the bank/local branch is chartered under. Provide list of locations available to the City. 3. Provide credit information from a nationally recognized rating organization such as Moody's, Standard & Poor's, etc. Discuss current FedFis (or equivalent service) rating published effective for the most recent quarter available and provide the pertinent information regarding financial strength and stability expected during the term of this proposed banking services contract. 4. Is the financial institution audited by an independent CPA firm? Please provide a copy of the most recent audit report. 5. Please submit your bank's most recent Call Report. 6. Provide your bank's Capital Ratio and Risk Based Capital Ratio for the past three (3) years. 7. Provide a summary of any significant changes in management during the past five (5) years. Include any recent or anticipated mergers or acquisitions. 8. Indicate whether your institution will provide the following services and at which location these services will be handled: a. Daily deposit of City funds b. Processing of federal withholding of tax deposits c. Coin counting services as needed d. Receiving of customer utility payments (lockbox) e. Certification of availability of funds for bond and interest payments to the State Treasurer's Office as requested by the City. 19 cityof Salina 9. Provide interest rate history on your institution for both interest-bearing checking accounts and public fund money market accounts for the last two (2) years. How often are these rates reviewed for changes? 10. Completion of the charges for banking services listed on Exhibit B. 11. Will the fees quoted in the proposal remain firm during the entire contract period? If no, for what period will your fees remain firm? What are the criteria and frequency for adjusting your fees? 12. State that the proposal submitted shall be binding upon the financial institution for 120 days from the submission date and that the individual signing proposal is authorized to make such a commitment. IX. FORMAT FOR SUBMISSION OF PROPOSAL In order to simplify the review process and obtain the maximum degree of comparison, proposals must be organized in a standard format. The following outline indicates organization which will provide information necessary for the processing of the proposal. 1. Title Page: Indicate the name of the institution, local address, telephone number, name of the contact person, and the date. 2. Table of Contents: Include a clear identification of the material by section and page number. 3. Letter of Transmittal: Limit the letter of transmittal to one or two pages. Briefly state the institution's understanding of the services to be performed and state the names of the persons who will be authorized to make representations for the institution. Also, state the person signing the letter is authorized to bind the institution. 4. Profile and Qualifications of the Institution: Include responses to all required and additional services as described with the Request for Proposal. State the location of the office (or offices) from which the various services are to be performed, identify the personnel who will work on the City's activity, and give the names and telephone numbers of client references for which similar services are provided. 5. Fees: Complete Exhibit B for calculating fees. Alternate fee proposals may be provided for the City's consideration. This should contain the estimated annual fee based on the projected activity shown. The City has the option of choosing the method most advantageous to them. 6. Additional Section: Since the preceding sections are to contain only data that is specifically required, any additional or supplemental information considered all City of Salina essential to the proposal shall be included in this section. If there is no additional data or information to present, state, "There is not additional data to be presented." X. REQUESTS FOR INFORMATION All request for information and questions regarding this RFP must be forwarded in writing or via email (Debbie.packaa salina.org) no later than 1:00 pm on Friday, November 11, 2022 to: City of Salina Request for Proposal — Banking Services Attn: Debbie Pack 300 West Ash Street, Suite 206 Salina, KS 67402-0736 By 5:00 pm on Tuesday, November 15, 2022 responses to questions will be provided to entities requesting responses and to all known proposers. The responses will also be posted as an addendum to the RFP on the City's Website at this time or available upon request. XI. EVALUATION OF PROPOSALS Proposals will be evaluated by the City of Salina utilizing the criteria set forth below. The City staff will make a recommendation to the entire Governing Body based upon this analysis. All proposals submitted will be the primary document upon which each proposal will be evaluated. All proposals will first be screened to determine minimum institution qualifications as outlined in this RFP. Proposals that do not meet these minimum requirements will automatically be rejected and shall not undergo further evaluation. Submitted proposals will be judged on the following evaluation criteria: 1. Scope of proposed services. 2. Cost of services and effectiveness of total services performed. 3. Experience, expertise and qualifications of key bank personnel assigned to the City. 4. Financial strength and stability of the bank. 5. Value of any new products or services suggested. 6. Quality level of services to be performed and proposed approach to cost control, service level monitoring and administration. 7. Clarity, completeness and timeliness of information provided for evaluation to the City. 21 XII. K/ 111 8. Quality of any in-person interview with the City's selection committee. City of Salina 9. Responses to reference checks. 10. Distance from City locations needing to make deposits to depository locations. 11. Number and locations of branches and services provided at each branch. In addition to the banking institutions' services, please provide the following: ■ A list, including address and zip code, of all banking locations, including affiliates and/or subsidiaries, located within the city limits of Salina, Kansas, and the services provided at each location. Are there any other reports the Respondent bank routinely prepares and distributes that provide information regarding any such programs as listed directly above that would be available to the City? The City reserves the right to utilize other appropriate selection and evaluation criteria as it deems necessary. PROPOSALSCHEDULE Event Deadline Distribution of Requests and Publication October 26, 2022 Questions Regarding Proposal Due 1:00 pm November 11, 2022 Responses to Questions Distributed and Posted by 5:00 pm November 15, 2022 Proposals Due 4:00 pm November 22, 2022 Evaluation/Interview/Facility Visitation Period December, 2022 Contract Signed by January 15, 2022 Expected Implementation Date March 1, 2023 Please note that these dates are anticipated and are subject to change. CONTRACT REQUIREMENTS All banks submitting proposals in response to this RFP must include in their proposal drafts of contracts for those banking services included in each proposal: 1. Security Agreement 2. Pledge and Custodial Agreement 3. Treasury Management Services Agreement 4. Wire and ACH Transfer Agreement 5. Other Agreements that the City will be required to execute 22 City of Salina The award of any contract for banking services pursuant to this RFP process is contingent upon the bank(s) receiving the award and successfully negotiating a contract for those banking services with the City. In the event the selected bank(s) will not execute an agreement that satisfies the contract terms required by this Section, or the City is unable to negotiate a contract it deems acceptable with the selected banks(s), the City may withdraw its award for banking services with the selected bank(s) and award its banking services to the next most qualified bank, or the City may call for new proposals at its option. The following contract terms must be included in all contracts for banking services. The City reserves the right to modify these contract terms by amendment, addition or deletion as it deems appropriate. RIGHT OF THE CITY TO TERMINATE AGREEMENT a. Termination for Cause. Without in any manner limiting the right of the City to terminate this Agreement or declare the BANK in default thereof for any reason set forth herein or in the Request for Proposal documents, if the work to be done under this contract shall be abandoned by BANK; or if this Agreement shall be assigned by BANK otherwise than as herein provided; or if the BANK should be judged as bankrupt; or if a general assignment of its assets should be made for the benefit of its creditors; or if a receiver should be appointed for the BANK or any of its property; or if at any time the City determines that the performance of the work under this contract is being unnecessarily delayed, that the BANK is violating any of the conditions or covenants of this Agreement, that it is executing the same in bad faith or otherwise not in accordance with the terms of said Agreement; then, in addition to other rights the City may choose to exercise, the city may, at its option, serve written notice upon the BANK of the City's intention to terminate this Agreement, and, unless within ten (10) days after the serving of such notice upon the BANK a satisfactory arrangement be made for the continuance thereof, this Agreement shall cease and terminate unless the City otherwise agrees to continue the Agreement. In the event of such termination, the City shall immediately serve notice thereof upon the BANK, and the City may take over the work and prosecute same to completion by contract with another banking institution or otherwise and in such event the City may take possession of and utilize in completing the work any and all documents and other materials as may be necessary therefore. When 23 city of Salina BANK's services have been so terminated, such termination shall not affect any rights or remedies of the City against BANK then existing or which may later accrue. Similarly, any retention or payment of monies due BANK shall not release BANK from liability. b. Termination for Convenience. City reserves the right, in its sole discretion and or its convenience and without cause or default on the part of the BANK, to terminate this Agreement by providing sixty (60) days prior written notice of such termination to BANK. Upon receipt of such notice from City, BANK shall: (1) immediately cease all work or (2) meet with City and, subject to City's approval, determine what work shall be required of BANK in order to bring the Project to a reasonable termination in accordance with the request of the City. If City shall terminate for its convenience as herein provided, City shall compensate BANK for all work completed to date of termination. Compensation shall not include anticipatory profit or consequential damages, neither of which will be allowed. Any termination of the Agreement for alleged default by BANK that is ultimately determined to be unjustified shall automatically be deemed a termination for convenience of the City. 2. INDEMNITY a. Definitions For purposes of indemnification requirements, the following terms shall have the meanings set forth below: i. The "BANK" means and includes BANK, all its employees, agents and assignees, and all its affiliates and subsidiaries, its subcontractors and/or assignees and their respective servants, agents and employees; and ii. "Loss" means any and all loss, damage, liability or expense of any nature whatsoever, whether incurred as a judgment, settlement, penalty, fine or otherwise (including attorney's fees and the cost of defense). b. Indemnity For purposes of this Agreement, BANK hereby agrees to indemnify, defend and hold harmless the City, its employees and agents from any and all "Loss" where "Loss" is caused or incurred or alleged to be caused or incurred in whole or in part as a result of the negligence of other actionable fault of the BANK. It is agreed as a specific element of consideration of this Agreement that this indemnity shall apply notwithstanding the joint, concurring or contributory or comparative fault or negligence of the City or any third party and, further notwithstanding any theory of law including, but not limited to, a characterization of the 24 city of Salina City's or any third party's joint, concurring or contributory or comparative fault or negligence as either passive or active in nature; provided; however, that the BANK's obligation hereunder shall not include amounts attributable to the fault of negligence of the City. Nothing in this section shall be deemed to impose liability on the BANK to indemnify the City for loss when the City's negligence or other actionable fault is the sole cause of loss. 3. INSURANCE During the performance of this contract, the BANK agrees to maintain for the duration of the contract, insurance coverage of the types and minimum liability as set forth below. Before entering into a contract, the successful bank shall furnish to the City a Certificate of Insurance verifying such coverage and identifying the City as a loss payee on the valuable paper's coverage. The certificate holder on the Certificate of Insurance shall be as follows: City of Salina, Kansas c/o City Clerk 300 West Ash Street, Room 206 Salina, KS 67402-0736 Prior to any material change or cancellation, the City will be given thirty (30) days advanced written notice, by registered mail, to the stated address of the certificate holder. a. Banker's Professional Liability: $2,000,000 per occurrence and as an annual aggregate. b. Banker's Blanket Bond: Coverage must be provided on Banker's Blanket Bond Standard Form 24 with a minimum limit of $3,000,000 per loss under Insuring Agreements A -Fidelity, B -On Premises and C -In Transit. A minimum limit of $2,000,000 shall be provided under Insuring Agreements E -Securities. Computer Crime coverage, in an amount not less than $2,000,000, is to be provided either by endorsement to the Banker's Blanket Bond or by separate bond. If courier/messenger services is to be utilized for pickup and delivery of receipts, this service must also be covered under the Banker's Blanket Bond. c. Cyber Liability: Vendor shall maintain cyber liability insurance covering acts arising out of their operations or services, including data and network liability/privacy and security liability; data breach response expense and notification. The policy limits shall not be less than the following: 1. Each wrongful act $1,000,000 25 city of Salina d. Workers' Compensation and Employer's Liability i. Workers' Compensation: Statutory ii. Employer's Liability: 1. Bodily Injury by Accident $100,000 each accident 2. Bodily Injury by Disease $500,000 policy limit 3. Bodily Injury by Disease $100,000 each employee e. Industry Ratings: The City will only accept coverage from an insurance carrier which offers proof that the carrier: i. Is licensed to do business in the state of Kansas ii. Carries a Best's Policyholders rating of A or better; and iii. Carries at least a Class X financial rating; or iv. Is a company mutually agreed upon by the City and the BANK A statement to the effect that the institution meets the insurance requirements must be contained in the response to the proposal. A certificate of insurance, naming the City as additional insured, shall be provided to the City by the successful institution within fifteen (15) days after notification of award. 4. COMPLIANCE WITH EQUAL OPPORTUNITY LAWS, REGULATIONS, RULES AND LAWS The BANK shall remain informed of, and shall comply with, all applicable laws, ordinances, rules, regulations, and orders of the City, County, State, Federal, or any other public bodies, which apply to work performed under this agreement. The BANK shall provide all necessary safeguards and protections as set forth by the United States Department of Labor, Occupational Safety, and Health Administration. The BANK agrees that: a. The BANK shall observe the provisions of the Kansas Act Against Discrimination (K.S.A. 44-1001 et seq.) and shall not discriminate against any person in the performance of work under the present Agreement because of race, religion, color, sex, national origin, ancestry or age; b. In all solicitations or advertisements for employees the BANK shall include the phrase "equal opportunity employer" or a similar phrase to be approved by the Kansas Human Rights Commission ("Commission"); a City of Salina c. If the BANK fails to comply with the manner in which the BANK reports to the Commission in accordance with the provisions of K.S.A. 44-1031 and amendments thereto, the BANK shall be deemed to have breached the present Agreement, and it may be canceled, terminated or suspended, in whole or in part, by the contracting agency; d. If the BANK is found guilty of a violation of the Kansas Act Against Discrimination under a decision or order of the Commission which has become final, the BANK shall be deemed to have breached the present Agreement, and it may be canceled, terminated or suspended, in whole or in part, by the contracting agency; and e. The BANK shall include the provisions of paragraphs 1. Through 4. above in every subcontract or purchase order so that such provisions will be binding upon such subcontractor or vendor. The BANK further agrees that the BANK shall abide by the Kansas Age Discrimination In Employment Act (K.S.A. 44-111 et seq.) and the applicable provision of the Americans with Disabilities Act (42 U.S.C. 1201 et seq.) as well as all other federal, state and local laws, ordinances and regulations applicable to this project and shall furnish any certification required by any federal, state or local laws, ordinances and regulations applicable to this project and shall furnish any certification required by any federal, state or local government agency in connection therewith. 5. GOVERNING LAW All contractual agreements shall be subject to, governed by, and construed according to the laws of the State of Kansas. 6. NEGOTIATION The City reserves the right to negotiate any and all elements of this proposal. 27 EXHIBIT A: APPLICATION TO ACT AS DEPOSITORY CITY OF SALINA, KANSAS REQUEST FOR PROPOSAL FOR BANKING SERVICES BANK NAME To: City of Salina Request for Proposal — Banking Services Attn: Debbie Pack 300 West Ash Street, Suite 206 Salina, KS 67402-0736 DATE The undersigned certifies that the bank submitting this proposal is an institution eligible to be a depository of public funds pursuant to K.S.A. 9-1401, et seq., as amended. Please answer the following question: Does the Bank have a main office or a branch office in the City of Salina, Kansas? Yes No If no, please indicate nearest location to Salina, Kansas: The undersigned hereby proposes, if selected by the City of Salina, to furnish the following services at the prices and terms stated, subject to all instructions, hereto. By submitting this signed proposal, the bank officially agrees to provide the services requested. This agreement covers all the terms, conditions and specifications of this proposal. The prices shall remain fixed for the term of the contract. Proposing Bank: By: Title: W., City of J Salina EXHIBIT B: REQUIRED SERVICES CITY OF SALINA, KANSAS REQUEST FOR PROPOSAL FOR BANKING SERVICES Financial Information: As of Qtr. End Date: FDIC Insurance Coverage: Yes No CRA Rating: Total Assets: Total Equity: Ratio — Equity divided by the Assets in % form: Current Net Profit Loss of Qtr.: Profit (Loss) as a percent of Equity: Total Deposits: Total Time Deposits of $100,000 or more: Total Loans: Total Loans 90 Days or More Past Due: Loan Loss Reserve as % of Total Loan: Total Troubled Debt: Total Renegotiated Amount of Troubled Debt: Allowance for Losses on Non -Real Estate Loans: Capital Ratio (Tier 1 and Tier 2; three most recent years): Risk Based on Capital Ratio (three most recent years): DBE Financial Institution: Yes No Enclose a copy of the most recent audited financial statement 29 City of J Interest Calculation: The financial institution will pay the City interest on daily collected balance in the City's account at the rate named below. The rate may be a fixed or variable rate. If the rate is variable, state the index used and the number of basis points above or below the index. Provide a one-year history of the index. General Operating Account: Fixed %: % Variable: Tied to T-bill rate Basis Points Above Other Index* Basis Points Below % Rate Only *State index to be used All Other Accounts: Fixed %: % Variable: Tied to T-bill rate Basis Points Above Other Index* Basis Points Below % Rate Only *State index to be used 30 The City currently maintains a $10,000,000 operating account balance with a nightly sweep. SWEEP ACCOUNT BALANCES BY MONTH FOR 2021-2022 MONTH ACCOUNT BALANCE January -21 99,237,745 February -21 62,158,726 March -21 60,598,547 April -21 70,620,221 May -21 78698,146 June -21 73,048,136 July -21 75,406,230 August -21 74,537,086 September -21 68,161,173 October -21 68,227,236 November -21 69,331,261 December -21 69,126,048 January -22 78,768,655 February -22 78,748,357 March -22 79,602,367 April -22 82,679,598 May -22 80,631,882 June -22 90,300,791 July -22 90,554,975 August -22 86,122,359 September -22 80,693,942 31 City of J salillllck PRICING WORKSHEET Account Services Per Item Monthly Fee Charge Please provide list all costs that apply to services offered. 32 City of J Salina EXHIBIT C: OPTIONAL SERVICES CITY OF SALINA, KANSAS REQUEST FOR PROPOSAL FOR BANKING SERVICES Use Exhibit C to submit your proposal for the optional services specified in Section V of this RFP. This includes: 1. Courier and Armored Car Services 2. Check Issuance 33 City of J saliva EXHIBIT D: OTHER VALUE-ADDED SERVICES CITY OF SALINA, KANSAS REQUEST FOR PROPOSAL FOR BANKING SERVICES Use Exhibit D to submit your proposal for other services not specified by this RFP. 34 Analysis of Banking Proposals Assumptions: Earnings • Monthly rate of proposed index rate +/- adjustment • Date of rate 11/21/2022 • Funds on Deposit - $25,000,000 average monthly balance • Annual Earnings calculated + Minimum Balance and alternative rate + Remaining Balance on proposed discounted rate X 12 months = Total Annual Earnings Expenses • Average service usage by the City per month • Cost of each service per proposal Q per month :. Acct Maint 1 ACH Edit Stmt fee 1 ACH File 23 ACH Notification of 3 ACH originated items 5467 ACH Origination Maint 1 ACH Positive Pay Maint 1 ACH return debits 8 ACH positive pay 4 Credits 156 Deposited items 6530 Checks/ACH Debits/Other 693 On-line banking per acct 1 Incoming domestic wire 1 EDI remittance report 1 Online banking per acct 1 Positive pay no recon 1 P ositive pay no recon 553 Check positive pay 2 returned deposited items 5 service chargeable debits 5 lockbox monthly maint 1 image transmission main 1 lockbox online access 1 Monthly Maint 1 lockbox deposits 22 lockbox deposited items 6530 Multiple item processing 6530 Lockbox online viewing> 1 image capture checks 6530 electronic credits 543 Investment/ICS Sweep 1 Garda 1 Itemized Earnings Proposals: *Credit to offset fees only Annual Fees: Bennington Equity #1 Equity #2 Sunflower UMB Total Annual Fees $118,740* 62,849.16 62,849.16 0** 55,420.74 Minimum Balance $5,000,000 $1-$4.99M N/A $6,500,000 N/A Rate on Min Bal 0% 1.25% 1%* >$5,M 2.5% Remaining Funds $20,000,000 525,000,000 $18,500,000 $25,000,000 Index 3 month MIP less 20 bps (.20%) Fixed Rate Lower end Fed Funds less 10 bps (.10%) Upper Fed Funds less 2.35% Upper Fed Funds less 80 bps (.8%) Index on 11/21/22 3.97% 3.75%-4.0% 3.75%-4.0% 3.75%-4.0% Discounted Rate 3.77% 3.65% 1.65% 3.2% Floor Rate .20% .25% .25% Annual Earnings on Min Bal 0 N/A N/A 0 N/A Annual Earnings on Remaining Funds 754,000 625,000 912,500 305,250 800,000 Total Annual Earnings $754,000 $625,000 $912,500 $305,250 $800,000 *Credit to offset fees only Annual Fees: *Fees waived with exception of Lock Box, Credit Cards and Treasury &Wealth Management **Fees covered with credit on minimum balance Net Proceeds: Bennington Equity #1Equity #2 Sunflower UMB Total Annual Fees $118,740* 62,849.16 62,849.16 0** 55,420.74 *Fees waived with exception of Lock Box, Credit Cards and Treasury &Wealth Management **Fees covered with credit on minimum balance Net Proceeds: Bennington Equity #1 Equity #2 Sunflower UMB Net Annual Proceeds $635,260.00 $562,150.84 $849,650.84 $305,250 $744,579.26 RESOLUTION NUMBER 23-8106 A RESOLUTION DESIGNATING THE OFFICIAL DEPOSITORIES FOR ALL MONEYS OF THE CITY OF SALINA, KANSAS, PROVIDING AUTHORIZATION FOR WIRE TRANSFERS, DESIGNATING AUTHORIZED CHECK SIGNERS, AUTHORIZING SECURITIES PURCHASES AND/OR SELL AND REPEALING RESOLUTION NUMBER 19- 7773. WHEREAS, K.S.A. 9-1401 requires that all municipalities depositories of the governing body's funds, WHEREAS, K.S.A. 9-1401 also states that banks, savin$`s'ai which have main or branch offices in the county in which atl or K be designated as such official depositories, and by official action, all eligible associations and savings banks the municipality is located shall WHEREAS, Bennington State Bank, Equity Bank, TTMB Bank, Sunflower Bail,, The Bank of Tescott, Central National Bank, Solomon State Bank, Capi b "Pedeial SiYJngs, Bank VI (a Division of Plains State Bank), First Bank Kansas, and Exchange Bank are autNi"i ed depositories'fo municipal funds, and � .. WHEREAS, the City Manager, Deputy City. Manager, Finance,"Dtfector and Deputy Finance Director are responsible for the daily;finapcial operations of the Ctyyof Sa1ma:SO NOW, THEREFORE BE IT RESOLVED by the Goverriing Bodyo'the`Czt of Section 1. That all public moneys :,received bythe City of Salina be deposited in Bennington State Bank, Equity Bank, UMB'�Bankr .Sunhower Bank, The Bank of Tescott, Central National Bank, Solomon State Bank;:Capitol Federal Savings, Bank VI, First Bank Kansas, or Exchange Bank, all of which are authoriied,deposil les of municipal funds, located in the City of Salina, Saline Countv'Kansas. Section 2. `,Thathe City Manager, Deputy City Manager, Finance Director, Deputy Finance Director and Human Resource Director are authorized to approve ACH and wire transfer payments on behalf of the Citvof Salina Section 3. That the City',IVaager, Deputy City Manager, Finance Director and Deputy Finance Director may authorize check signers and access to the various accounts required by the City of Salina. Section 4. That the City Manager, Deputy City Manager, Finance Director and Deputy Finance Director are authorized to approve the purchase and/or sell of securities for the account of the City of Salina. Section 5. That Resolution Number 19-7773 is hereby repealed. Adopted by the Board of Commissioners and signed by the Mayor this 6t" day of February, 2023. (SEAL) ATTEST: JoVonna Rutherford, City Clerk Michael L. Hoppock., Mayor